There is no connection


Verizon sneaks in a price increase just as the Universal Service Charge is phased out
Do you believe this?

Verizon Communications Inc. is imposing a new surcharge on high-speed Internet service just as customers were set to receive lower bills thanks to a decision last year to deregulate the service.

In a recent notice to customers, the telecommunications company said it would begin imposing the surcharge for all new digital-subscriber line customers, and on current DSL customers with monthly plans. Customers on an annual plan will start paying when their plan expires.

The surcharge will initially be $1.20 a month for customers with service up to 768 kilobits per second and $2.70 per month for customers with faster DSL service, according to the company.

The fee comes as a government fee on DSL customers for the Universal Service Fund is being phased out. For customers with service up to 768 kpbs, the fee was $1.25 a month, and for customers with service of up to 3 Mbps, the fee was $2.83 a month, according to Verizon. Customers will no longer pay such charges effective Aug. 14, New York-based Verizon said.

Bobby Henson, a Verizon spokeswoman, cited "new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service. That service doesn't have the benefit of the revenue that was coming in from voice."

Right.

It's a price increase, not a surcharge. Bait and switch time.

Instead of raising the base price, they slap on a "surcharge."

I think my favorite bit is this.

Henson said the decision to impose the new surcharge now "is not related at all to USF." She said she "would strongly disagree" with criticisms that Verizon was in effect diverting to its own coffers money that had previously supported the Universal Service Fund.

If I had Verizon as an ISP, I would be upset. Denials aside, there is a little too much coincidence to believe Verizon.

I'm betting that the competition shows Verizon the error of it's ways.

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— NeoWayland

Posted: Wed - August 23, 2006 at 04:36 PM  Tag


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